Why Does the Market Fall When You Buy and Rise When You Sell?
If you have ever felt that the cryptocurrency market always seems to rise as soon as you sell and fall right after you buy, know that this feeling is more common than you think. Although it may seem like a conspiracy against you, there are logical explanations for this phenomenon.
1. The Selective Attention Bias
Our brain tends to remember negative experiences more than positive ones. When you buy and the price falls, this loss draws more of your attention. The same happens when you sell and see the price rise. This psychological effect is called confirmation bias, where we unconsciously seek to "prove" that the market always acts against us.
2. The Natural Volatility of the Market
The cryptocurrency market is extremely volatile. Small fluctuations are normal, but when we are emotionally involved, we tend to interpret these movements as something specifically targeted against our trades. In reality, these fluctuations occur regardless of your decisions.
3. The Impact of Orders on the Market
When many investors buy at the same time, the price can temporarily rise before correcting. The same happens with sales: when a large number of people decide to sell, the price may drop but then recover. These movements make it seem like your trades always happen at the worst time.
4. The Influence of Large Investors (Whales)
The major players in the market, known as whales, can manipulate prices by detecting liquidity points. If many investors place buy or sell orders at a certain level, these whales can provoke contrary movements, influencing the market.
If you have ever felt that the cryptocurrency market always seems to rise as soon as you sell and fall right after you buy, know that this feeling is more common than you think. Although it may seem like a conspiracy against you, there are logical explanations for this phenomenon.
1. The Selective Attention Bias
Our brain tends to remember negative experiences more than positive ones. When you buy and the price falls, this loss draws more of your attention. The same happens when you sell and see the price rise. This psychological effect is called confirmation bias, where we unconsciously seek to "prove" that the market always acts against us.
2. The Natural Volatility of the Market
The cryptocurrency market is extremely volatile. Small fluctuations are normal, but when we are emotionally involved, we tend to interpret these movements as something specifically targeted against our trades. In reality, these fluctuations occur regardless of your decisions.
3. The Impact of Orders on the Market
When many investors buy at the same time, the price can temporarily rise before correcting. The same happens with sales: when a large number of people decide to sell, the price may drop but then recover. These movements make it seem like your trades always happen at the worst time.
4. The Influence of Large Investors (Whales)
The major players in the market, known as whales, can manipulate prices by detecting liquidity points. If many investors place buy or sell orders at a certain level, these whales can provoke contrary movements, influencing the market.
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